Home prices continue recovery across the country

Home prices in the Los Angeles area rose 1 percent in September and were up 4 percent from a year earlier, according a 20-city index of home prices from Standard and Poor's/Case-Shiller.

Home prices increased in September in most major U.S. cities, more evidence of a housing recovery that is providing a lift to the fragile economy.

The index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The September figures are the latest available.

Across the nation, prices increased in 18 of 20 cities over the 12-month period. In Phoenix, prices jumped 20.4 percent over that stretch to lead all cities. Prices in Atlanta showed a modest 0.1 percent increase, ending 26 straight consecutive year-over-year declines.

The national composite was up 3.6 percent in the third quarter of 2012 versus the third quarter of 2011, and was up 2.2 percent versus the second quarter of 2012.

Las Vegas, one of the hardest hit areas during the housing crisis, saw its home prices rise 1.4 percent in September - the biggest gain among the 20-city index. It's annual price gain was 3.8 percent, the report said.

Atlanta, Detroit and Las Vegas remain the only three cities with average home prices below their January 2000 levels. Detroit is nearly 20 percent below its January 2000 level.

Another report released last week by the California Association of Realtors showed that the statewide median price rose 0.3 percent to $345,000 in September - its highest level in more than four years.

And it was up 19.5 percent from the year-ago price of $288,700, the association reported.

But tight inventories have muted sales, resulting in a monthly sales decline of 5.2 percent and an annual drop of 1.2 percent.

"Sales in the inland and coastal markets continue to move in different directions," CAR President LeFrancis Arnold said last month. "Low inventory - especially in distressed areas - is dampening sales activity."

Marty Rodriguez, owner of Century 21 Marty Rodriguez in Glendora, said investors are often swooping in and buying up properties before first-time buyers can make an offer.

But the price, she said, must be right or the investors won't get involved. Rodriguez said investors are looking for low-cost properties they can buy, fix up and turn around quickly to make a profit.

"The market is very tight now because interest rates are so low," she said. "They contact me to find them properties - but they have to make sense. We're seeing a lot of multiple offers."